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4 Ways How Ai Is Revolutionizing The Cpg Industry
Submitted as: devraaj
At a 3% CAGR (Compound Annual Growth Rate), the CPG Industry in 2027 is expected to reach USD 238.22 Billion from a value of USD 193.81 Billion in 2020. Although the demand in the CPG sector is largely constant, it is quite a competitive industry owing to low consumer switch costs and inflated market saturation.
Consumer packaged goods retail has traditionally been driven by trade promotion where simply the price of the goods and store size was used as the strategy for market domination. But now, when the consumers are easily switching their brand loyalties, there is a need to understand buying behavior and the changing demand supply chain. Even though basic marketing 101 is that with the change in consumer needs, the service or product must also be adjusted. For this reason, many sales reps are encouraged to take guidance under capital market consulting. Considering the current position of the CPG sector, here are a few ways AI tech is changing the CPG industry:1. Understanding buying behavior:
The consumer packaged goods industry is reliant on the interests and needs of the buyer. AI can play a crucial role here in deciphering buyers' behavior by analyzing their life cycles. However, if taken a step further, AI can understand buying behaviors by taking into account an individual's buying history and social media data to deliver the best advertisement at an opportune time. This will help in increasing the brand relevancy and reduce the 'mindless advertising' as perceived by consumers.2. Personalizing customer service:
Unlike certain misconceptions, AI improves customer experiences. A study conducted by Google and BCG (Boston Consulting Group) indicated that consumer packaged goods businesses could generate over 10% growth in revenue by utilizing AI. Chatbots interact with consumers in real-time and realistically in addressing their concerns and questions. AI is already establishing a customer service that surpasses the traditional ones. This is why AI-based capital market consulting can play a huge role in boosting sales.3. Inventory management:
In the consumer packaged goods sector, managing inventory is progressively changing with how much data is available in real-time. There is a need to redevelop the supply chain procedures and infuse AI in inventory operations. Warehouse optimization, supplier backorders, stock levels, user demand, and more such factors are now under the guidance of intricate AI systems like machine learning. For instance, demand prediction in inventory management can estimate the future demand for all your inventory items. Furthermore, the impact of the demand can also be tracked by utilizing external data.4. Improving procurement process:
AI can play a huge role in procurement efficiency and efficacy, leaving only a superior workload for the consumer packaged goods professionals. With an AI-driven tech stack, the procurement team can delegate everyday tasks like record keeping, digital assistance, checking invoices between contracts, and transcription. At a superior level of machine learning, AI can perform analytics to offer insights into buyers' behaviors.
Embark on your AI-powered CPG journey
At a 3% CAGR (Compound Annual Growth Rate), the CPG Industry in 2027 is expected to reach USD 238.22 Billion from a value of USD 193.81 Billion in 2020. Although the demand in the CPG sector is largely constant, it is quite a competitive industry owing to low consumer switch costs and inflated market saturation.(read
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